Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


IG - Afternoon thoughts January 10, 2012

FTSE 6103 +4
DAX 7733 +13
CAC 3720 +3
IBEX 8634 +28
DOW 13415 +24
NAS 2734 +6
S&P 1464 +3

Oil 93.45
Gold 1657

Regional markets are mostly firmer on the back of China’s trade balance numbers, which smashed expectations. China posted a trade surplus of $31.6 billion (versus a consensus of $20.1 billion) with exports jumping 14.1% and imports up 6%. Equities have gained ground on the back of the data with the Nikkei rising 0.8%, the Hang Seng climbing 1% and the Shanghai Composite advancing 0.7%. USD/JPY is back above 88 and is helping to underpin gains in the Nikkei ahead of Japan’s current account data tomorrow. Should this data miss expectations then we are likely to see further yen weakness. In the risk currency space, AUD/USD has been a standout after jumping from 1.05 to an Asian trade high of 1.0554. The pair had been subdued earlier after local building approvals and retail sales data disappointed. However, with China continuing to show strong signs of stabilisation, AUD/USD is in good stead. The pair had been stuck in a range between 1.047 and 1.052 all week and this move finally saw it break out. As a result, the 1.052 region will now be acting as near-term support. The other risk currencies haven’t responded quite as profoundly, with EUR/USD and GBP/USD remaining relatively subdued ahead of central bank meetings later today.

Investors will be on central bank watch later today with the BOE and ECB set to meet. Ahead of the European open, we are calling the major bourses flat to mildly firmer. Subdued price action in GBP/USD and EUR/USD suggests market participants are exercising caution ahead of the central bank meetings. Both banks are expected to leave the current policy settings unchanged. The ECB press conference will carry more weight with Mario Draghi set to hit the wires. Mr Draghi might give hints on what to expect from the OMT, potential for negative rates and perhaps the growth outlook following the recent reforms. US markets are pointing to a firmer start with unemployment claims data in focus. Fed members George and Bullard will also be on the wires and might make some comments regarding QE.

The local market has added 0.3% 4721 after materials swung into positive territory on the back of China’s data. Fortescue Metals has surged 2.5%, Alumina is 3.4% higher and BHP Billiton has edged up 0.2%. AWC was upgraded to outperform (from neutral) by Credit Suisse today. The stock has been having a good run on the back of the Alcoa result. The energy sector is underperforming despite Linc Energy shares rallying over 11%. Gold miners have continued to lag as the precious metal fails to shake off recent weakness. Newcrest Mining has declined 1.7% and Medusa Mining is down 1.4%. The financials have held up well with all four big banks modestly firmer. Surprisingly defensive sectors continue to lead the gains despite all the developments on the risk front. Consumer staples are having a good run with Wesfarmers rising 1.1% and Coca-Cola Amatil up 1%.

ENDS

www.igmarkets.com

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news